Most people think that working at your hobby would make the best retirement business that they can think about. While I concur with this thinking there are a few warnings that come with this option.
Think about your hobby. Are there supplies that you regularly have to buy? Are these supplies easy to find locally? Can they be cheaply shipped by parcel, which would allow you to sell the items on line and not require you to open a storefront with the associated rents, utilities and staff? This will also allow you to run your business during different time of day at your convenience. If you need storage space, you could rent inexpensive storage areas. If there is a lot of competition for selling supplies, look at carrying specialty items that local stores do not carry. Are there customer made products available for you to sell. The large chain hobby shops, do not like to carry a lot of these specialty items. They go after the mass produced items and the items that sell the most.
Is the product you make from your hobby a sellable product? Everyone thinks they are but I recommend that you buy a booth at a festival and try to sell some of your product. This will give you a change to meet and talk with some of your potential customers. You’d be surprised on how frank they can be to you about your quality, pricing and design. If you are able to sell large amounts at a festival, you have a chance of having a good supplemental business. But don’t go too far until you have proven you can sell enough to make a business from this.
Now for the warnings.
The market frequently is not prepared to spend the cost of your product if there is a (lower quality but functional) product made in a low cost production company that is less than half of the price of yours. If the market is there they will probably demand the highest level of quality and may not consider your work of that level. Remember you are competing against others who have probably been doing this full time for many years.
Don’t even think of renting large amounts of space with all the costs involved, unless you know you will have the sales. This is the quickest way to taking a very big risk with your money.
Don’t think that your hobby equipment will hold up under high demand put on it by you using it for a business. It is probably fine to test the market with it but you will have to buy heavy duty commercial equipment for it to last long and to turn out the highest quality work.
And remember that you have started a business. You are no longer doing this for just fun.
But good luck, this can be the happiest way to make supplemental income during your retirement.
This new weekly column, 101 New Business Ideas for Retirees, is compiled specially for CoolBusinessIdeas.com readers by Stan Spector. See all articles in this column by Stan Spector.
Stan Spector is the author of “Baby Boomers’ Official Guide to Retirement Income - Over 100 Part-time or Seasonal Businesses for the New Retiree”. The book website is at StanSpector.com.
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